RE:Purcell Canadian International Minerals Inc. (CIN: $0.05) has optioned a 70-per-cent interest in two of its three new diamond properties near Pikoo in Northern Saskatchewan to Grenville Thomas's North Arrow Minerals Inc. (NAR: $0.60). The arrangement covers the A and B blocks that Canadian International acquired from three "arms-length individuals" just last week. (One of those vendors has shorter arms than the others: Luke Schuss is a nephew of Michael Schuss, Canadian International's president and CEO.) The A claims are immediately east of North Arrow's Pikoo property while the B block is about five kilometres northeast of Pikoo, putting most of Canadian International's ground within 10 kilometres of North Arrow's small but rich PK-150 kimberlite.
Under the option terms, North Arrow need only repay Canadian International's staking costs and test a kimberlite discovery for diamonds. The deal does not specify a minimum exploration expenditure or a time frame, which has apparently annoyed some of Canadian's shareholders. Nevertheless, it seems a good deal for the company as North Arrow will immediately expand its current program of Pikoo till sampling to cover the new ground. If kimberlite indicators turn up, it would then carry out geophysics and drilling as required -- work that would cost Canadian International at least $1-million to complete and would not begin until next year. Further, the deal allows the Schusses to take their promotional name-dropping to a higher degree: "North Arrow? The fellows who hit kimberlite in nine of 10 drill holes last year and recovered 23 commercial-sized diamonds from 210 kilograms of kimberlite at PK-150? Yes, they are our new partners." Unfortunately, North Arrow considers PK-150 too small to be of interest despite its diamond content of 1.3 carats per tonne, so investors are left hoping more substantial anomalies turn up at Pikoo and its satellite properties.